5 Powerful Lessons from the book “African American Experience During World War II”

5 Powerful Lessons from the book “African American Experience During World War II”:

1. Unbreakable Spirit:
Over 1.2 million African American men and women served with unwavering courage and commitment in every branch of the U.S. military during WWII, despite facing systemic discrimination and limited opportunities. Their resilience and patriotism in the face of adversity stand as a testament to the indomitable human spirit.

2. Fighting for a Double Victory:
Black Americans sought to achieve a “Double Victory” – defeating the Axis powers abroad while simultaneously battling racism and injustice at home. This powerful movement united the community in a shared struggle for freedom, equality, and dignity.

3. Overcoming Segregation:
Black soldiers, sailors, airmen, and Marines served with distinction in segregated units, enduring substandard conditions and hostility from white communities. Yet, they persevered, shattering stereotypes and proving their mettle on the battlefield.

4. Pivotal Contributions:
African American service members played pivotal roles in some of the most significant battles of WWII, from the D-Day invasion to the Battle of the Bulge and the Pacific campaigns. Their valor and sacrifice were essential to the Allied victory.

5. Unrecognized Heroism:
Despite their immense contributions, African American service members were denied the recognition they deserved. Not a single African American received the Medal of Honor during WWII, despite the 472 awarded to other U.S. recipients. This injustice serves as a sobering reminder of the work still needed to ensure true equality and justice for all.

The African American experience during WWII is a testament to the power of resilience, courage, and the unbreakable human spirit. Their stories deserve to be honored, remembered, and studied, as they continue to inspire generations to come in the ongoing struggle for a more just and equitable world.

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Identity-Based Habits

“Identity is about what you believe.” ~ James Clear

Regarding identity-based habits, the focus is always on who you wish to become. The ultimate form of intrinsic motivation is when a habit becomes part of your identity, writes James Clear.

It is a simple two-step process:

  • Decide the type of person you want to be.
  • Prove it to yourself with small incremental improvements and wins.

“Ask yourself, “Who is the type of person that could get the outcome I want?”

“The most effective way to change your habits is to focus not on what you want to achieve, but on who you wish to become.”

“Your identity emerges out of your habits. Every action is a vote for the type of person you wish to become.”

“Becoming the best version of yourself requires you to continuously edit your beliefs, and to upgrade and expand your identity.”

In order to believe in a new identity, we have to prove it to ourselves.

Identity-Based Habits

The key to building lasting habits is focusing on creating a new identity first. Your current behaviors are simply a reflection of your current identity.

What you do now is a mirror image of the type of person you believe that you are (either consciously or subconsciously).

To change your behavior for good, you need to start believing new things about yourself. You need to build identity-based habits.

The process of changing your habits start by focusing on who we wish to become.

The Recipe for Sustained Success

Changing your beliefs isn’t nearly as hard as you might think. There are two steps.

1. Decide the type of person you want to be.
2. Prove it to yourself with small wins.

First, decide who you want to be. This holds at any level—as an individual, as a team, as a community, as a nation. What do you want to stand for? What are your principles and values? Who do you wish to become?

These are big questions, and many people aren’t sure where to begin—but they do know what kind of results they want: to get six-pack abs or to feel less anxious or to double their salary. That’s fine; start there and work backward from the results you want to the type of person who could get those results. Ask yourself, “Who is the type of person that could get the outcome I want?”

“The real reason habits matter is not because they can get you better results (although they can do that), but because they can change your beliefs about yourself,” James Clear contends.


References:

  1. Sam T. Davis, Atomic Habits by James Clear, Sam T. Davis.
  2. James Clear, Identity-Based Habits: How to Actually Stick to Your Goals This Year…an excerpt from Atomic Habits, James Clear.

Identity and Goals

Setting goals, writing down your goals and daily reading them aloud isn’t always enough to successfully accomplish the goals.

If you don’t believe you’re the kind of person who can achieve the goals you have, then no amount of writing them down or reading them aloud is going to inspire you to take action.

If you want to learn how to commit to your goals in the long-term, you have to develop an identity that drives the behaviors and develop the habits you need to achieve them.

This is what the long-term commitment individuals do. They believed they would play their musical instrument or play football for the rest of their lives (regardless of whether that was true or not).

They didn’t perceive themselves as individuals playing musical instruments or playing football as an extra-curricular activity – they perceived themselves as musicians or football players.

How to Create a New Identity

Your identity is who you are. This is not to be left to other people’s judgments, it’s to be left to your own. You’re not defined by your appearance, your job description or your past. In any moment, you can redefine who you are.

This is done by:

  • Defining who you want to be (“I’m a musician” or “I’m a football player”).
  • Taking action and creating reference points that justify your new belief. (“I am a musician because I practice every day”).

When you think of taking action, the smaller the better. Why? Because small actions don’t intimidate you to start and therefore are easier to do – consistently. When you consistently take action, you create more momentum and it’s easier to move towards your goals.

It’s common to define who you are by saying: “I am”.

If you look at any “I am” preface you use to describe who you are, it will often connote a lot about what you do as well. A good rule of thumb to use is:

  1. Associate “I am” prefaces to positive behaviors you want and
  2. Disassociate “I am” prefaces from negative behaviors you don’t want.

For example, if your goal is to run a marathon: “I am a runner, therefore I run” is better than: “I am training to run a marathon, therefore I have to run” (notice how “have to” makes it sounds like a chore?).

When a behavior is linked to your identity, it drives your behavior.

Conversely, if your goal is to learn how to break a bad habit and replace it with a better one, it’s better to dis-identify with a negative behaviour.

For example, “the last diet I tried failed” is better than “the last diet I tried failed, therefore I am a failure”.

When you redefine who you are with a new, empowering “I am” preface, you feel the need to take action: failure to do so would mean you’re a liar (and no one wants to be a liar). When you decide: “I am a musician” or “I am an author” you have no choice but to make music or write books.

Here’s are a few more examples:

If your goal is to write a book, you’re a writer, therefore you write.

If your goal is to lose 14 pounds, you’re a healthy eater, therefore you eat healthy (doesn’t this have a better connotation than “dieter” or “weight-watcher”?)


References:

  1. Sam Thomas Davies, A Tiny, Powerful Idea: How ‘Identity-Based’ Habits Shape Behavior, Sam Thomas Davies, May 29, 2023.
  2. Coyle, D. The Talent Code: Greatness Isn’t Born: It’s Grown. New York: Bantam, 2009.

Personal Identity

Identity is largely concerned with the question: “Who are you?” What does it mean to be who you are?

Identity relates to our basic values that dictate the choices we make (e.g., relationships, career).

Identity can be seen as a person’s sense of self, established by their unique characteristics, affiliations, and social roles. Moreover, identity has continuity, as one feels to be the same person over time despite many changes in their circumstances.

The seeds of identity are planted during a person’s childhood when their caregivers influence them the most.

Yet, as individuals transition from childhood to adolescence, they start questioning who they are and how they fit in society. Hence, adolescents set out to discover their senses of self by experimenting with different roles and behaviors (Erikson, 1956).

Although adults continue to reassess their identities throughout their lives, the changes to their identities are relatively small. Therefore, according to the famous psychologist Erik Erikson, this significant identity development during adolescence is essential for forming a solid self-concept and developing a direction in life (Erikson, 1956).

A solid sense of identity means that you know who you are, what you value, and how you see yourself in society. There are many components of your identity, such as religious, political, and gender, among others, and knowing yourself fully is essential to feel integrated into society. ​


References:

  1. Erikson, E. H. (1956). The problem of ego identity. Journal of the American Psychoanalytic Association, 4, 56–121.
  2. Eser Yilmaz, M.S., Ph.D., Identity: Definition, Types, & Examples, Berkeley Well-Being Institute,

Identity

“Your identity is a set of physical, mental, emotional, social, and interpersonal characteristics that are unique to you.” ~ Very Well Mind

Your identity gives you your sense of self. It is a set of traits that distinguishes you from other people, because while you might have some things in common with others, no one else has the exact same combination of traits as you.

What defines identity?

Identity encompasses the values people hold, which dictate the choices they make.

An identity contains multiple roles—such as a mother, teacher, and U.S. citizen—and each role holds meaning and expectations that are internalized into one’s identity.

Identity continues to evolve over the course of an individual’s life.

Identity formation involves three key tasks:

  • Discovering and developing one’s potential,
  • Choosing one’s purpose in life, and
  • Finding opportunities to exercise that potential and purpose.

Identity is also influenced by parents and peers during childhood and experimentation in adolescence.

Your identity is a set of physical, mental, emotional, social, and interpersonal characteristics that are unique to you.

It encapsulates your core personal values and your beliefs about the world, says Asfia Qaadir, DO, a child and adolescent psychiatrist at PrairieCare.

Is Personality Genetic?

Identity Development Across the Lifespan
Identity development is a lifelong process that begins in childhood, starts to solidify in adolescence, and continues through adulthood.

Childhood — Childhood is when we first start to develop a self-concept and form an identity.

As children, we are highly dependent on our families for our physical and emotional needs. Our early interactions with family members play a critical role in the formation of our identities.

During this stage, we learn about our families and communities, and what values are important to them, says Dr. Qaadir.

Adolescence  — Adolescence is a critical period of identity formation.

As teenagers, we start to intentionally develop a sense of self based on how the values we’re learning show up in our relationships with ourselves, our friends, family members, and in different scenarios that challenge us, Dr. Qaadir explains.

Adolescence is a time of discovering ourselves, learning to express ourselves, figuring out where we fit in socially (and where we don’t), developing relationships, and pursuing interests, says Dr. Qaadir.
This is the period where we start to become independent and form life goals.

It can also be a period of storm and stress, as we experience mood disruptions, challenge authority figures, and take risks as we try to work out who we are.

Adulthood  — As adults, we begin building our public or professional identities and deepen our personal relationships, says Dr. Qaadir.

These stages are not set in stone, rather they are fluid, and we get the rest of our lives to continue experiencing life and evolving our identities, says Dr. Qaadir.

The Importance of Identity — Having a strong sense of identity is important because it:

  • Creates self-awareness: A strong sense of identity can give you a deep sense of awareness of who you are as a person. It can help you understand your likes, dislikes, actions, motivations, and relationships.
  • Provides direction and motivation:Having a strong sense of identity can give you a clear understanding of your values and interests, which can help provide clarity, direction, and motivation when it comes to setting goals and working toward them.
  • Enables healthy relationships:When you know and accept yourself, you can form meaningful connections with people who appreciate and respect you for who you are. A strong sense of identity also helps you communicate effectively, establish healthy boundaries, and engage in authentic and fulfilling interactions.
  • Keeps you grounded: Our identities give us roots when things around us feel chaotic or uncertain, says Dr. Qaadir. “Our roots keep us grounded and help us remember what truly matters at the end of the day.”
  • Improves decision-making: Understanding yourself well can help you make choices that are consistent with your values, beliefs, and long-term goals. This clarity reduces confusion, indecision, and the tendency to conform to others’ expectations, which may lead to poor decision-making.
  • Fosters community participation: Identity is often shaped by cultural, social, political, spiritual, and historical contexts. Having a strong sense of identity allows you to understand, appreciate, and take pride in your cultural heritage. This can empower you to participate actively in society, express your unique perspective, and contribute to positive societal change.

On the other hand, a weak sense of identity can make it more difficult to ground yourself emotionally in times of stress and more confusing when you’re trying to navigate major life decisions, says Dr. Qaadir.


References:

  1. Identity, Psychology Today.
  2. American Psychological Association. Identity.
  3. Sanjana Gupta, Why Identity Matters and How It Shapes Us, Very Well Mind, May 30, 2023.

Non-Financial Aspects of Retirement

Most Baby Boomers need to prepare for the profound personal and life changes retirement involves.

Retirement has changed dramatically since your parents’ generation. Being ready to retire means much more than financial matters. It also means being mentally, emotionally and socially prepared for your later years of life.

People are living far longer and in far better mental and physical health. Instead of slowing down, they leave their jobs feeling ready to take on the world. They’re financially independent, active, and capable, write authors Ted Kaufman and Bruce Hiland in their book “Retiring?: Your Next Chapter Is about Much More Than Money.”

Yet, people are less prepared for the rigors of living during retirement. Although financial planning and knowing your “magical number” remain essential prerequisites for retirement, a successful retirement requires equal, if not more, attention to non-financial issues.

Addressing non-financial issues seemed to be the key to a satisfying retirement, but only financial matters seemed to get the necessary attention.

Most individuals approaching retirement have practically no real-world experience with what people actually do after they retire, not to mention how their lives change, so they ignore planning for retirement.

Those approaching retirement need to learn more about how retirees live day-to-day or what issues they face other than aging. They do not have much to go on.

Paying attention to fears, feelings, and relationships regarding retirement can be uncomfortable, and planning the next chapter of your life without a roadmap can seem daunting.

According to an experienced psychotherapist, denial is the likely explanation for people’s failure to plan for the non-financial aspects of retirement. Denial is people’s unconscious psychological defense mechanism to avoid a problem or issue.

However, successfully retired people describe retirement as a “new chapter” or “journey.” They see their retired life as a “new adventure.”

The fundamental questions to ask yourself include, “When should I retire?” “What will I do?” and “Where will I/we live?”

Also, you should think about how you will care for your body, your brain, your heart, and your soul, or, said differently, your physical, intellectual, emotional, and spiritual well-being, wrote Ted Kaufman, a former United States Senator from Delaware and Bruce Hiland, formerly McKinsey & Co. and was Chief Administrative Officer at Time Inc.

Source:

  1. https://www.nextavenue.org/retirement-is-about-much-more-than-money/
  2. https://bookshop.org/p/books/retiring-your-next-chapter-is-about-much-more-than-money-ted-kaufman/16291203

We need to start counting our blessings, be grateful, rejoice over the most minor matters, and enjoy the simplicity of life!

Also, it’s important to value human connection, the opportunity to add value, and the ability to help others realize their potential through small but thoughtful and intentional gestures.

Qualifying Longevity Annuity Contract (QLAC)

A qualifying longevity annuity contract (QLAC) is technically a deferred income annuity purchased by a tax-free transfer of a portion of your tax-qualified accounts, generally made after age 55. That transfer, in addition to adding a QLAC to your plan, reduces your account to determine taxable required minimum distributions (RMDs).

So, if you used 25% of a $400,000 qualified account, your $100,000 purchase of a QLAC would reduce your RMDs by 25%. And the income from a QLAC could be deferred until as late as age 85.

Net Income vs. Free Cash Flow

The world of free cash flow (FCF) and net income are intriguing. These two financial metrics often dance around each other, but they’re not quite the same:

  1. What Is Net Income?
    1. Net income (profit or earnings) represents the bottom line on a company’s income statement. It’s the total profit a company has made after accounting for all expenses, taxes, and interest.
    2. Net income is calculated as:
      Net Income=Total Revenue−Total Expenses
  2. What Is Free Cash Flow (FCF)?
    1. FCF is a powerful metric that goes beyond net income. It measures the cash a company generates from its operations minus the necessary capital expenditures (like buying new equipment or expanding facilities).
    2. FCF considers both cash inflows (from operating activities) and cash outflows (such as asset investments).
    3. The formula for FCF is:
      FCF=Cash Flow from Operations−Capital Expenditures
  3. Why Might FCF Be Higher Than Net Income?
    1. FCF can exceed net income for several reasons.
    2. Non-Cash Expenses:
      1. Depreciation and amortization are non-cash expenses that reduce net income but don’t directly impact cash flow. If these expenses are significant, FCF can be higher.
      2. Working Capital Changes: Changes in working capital (like accounts receivable, inventory, and accounts payable) affect cash flow. If a company efficiently manages its working capital, FCF can surpass net income.
      3. Capital Expenditures: FCF can be higher if a company has minimal capital expenditures (e.g., it doesn’t need to invest heavily in new equipment).
      4. Timing Differences: FCF considers the actual timing of cash flows, whereas net income is based on accrual accounting. Timing differences can lead to variations between the two.
  4. Why Does It Matter?
    1. Investment Decisions: Investors often focus on FCF because it reflects a company’s ability to generate usable cash. Higher FCF means more flexibility for growth, dividends, or debt reduction.
    2. Sustainability: A company with consistently positive FCF is better positioned to weather economic downturns or invest in future projects.

Media Perception: Media reports often emphasize net income, but understanding FCF provides a deeper insight into a company’s financial health.

Remember, while net income is essential, FCF tells us whether a company can use that income to fuel growth or weather storms. So, next time you analyze financial statements, watch net income and FCF—they’re like two dancers performing different moves on the same stage!

Inflation and Investments

Inflation is an economy-wide, sustained trend of increasing prices of goods and services, and loss of dollar purchasing power from one year to the next. It affects investments in several ways:

Real Value Erosion:

The rate of inflation represents how quickly investments lose their real value and how quickly prices increase over time.

As prices rise, the purchasing power of money decreases. For example, if you can buy a burger for $2 this year and the yearly inflation rate is 10%, next year the same burger will cost $2.20.

To maintain your standard of living, your investments need to generate returns equal to or greater than inflation.

Investment Returns and Inflation:

If your investment returns do not outpace inflation, your real returns (adjusted for inflation) may be negative.

Suppose ABC stock returned 4% and inflation was 5%. The real return on investment would be minus 1% (5% – 4%).

Asset Classes and Inflation:

Liquid assets (e.g., cash, short-term deposits) tend to appreciate more slowly than other assets. They are more vulnerable to the negative impact of inflation.

Illiquid assets (e.g., real estate, long-term investments) are also affected by inflation but may appreciate in value or generate interest, providing a natural defense.

In summary, understanding inflation is crucial for making informed investment decisions. Consider investments that can keep pace with or exceed inflation to protect your purchasing power over time.